We have mistakenly added a new member before verifying them.

So now I have made the person non-active in 'User is active' no option.

What does it mean what is it they can do and can't do?

And what is the difference in what they can and can't do with 'banned'?
Can they still log in?

When they log in, they will receive a message saying that they are not active and must wait for the administrator to activate them. they will be unable to do anything that logged in members can do.

Thanks.